The marginal revenue of a price taker is:
a. equal to price.
b. less than price.
c. more than price.
d. unrelated to price.
Question 2
Using supply and demand analysis, which of the following is true?
a. The burden of a tax on production cannot be determined on the basis of who actually pays the tax.
b. The burden of a tax on production is always split evenly between consumers and sellers.
c. Consumers bear the entire burden of a per unit tax on production.
d. Sellers bear the entire burden of a per unit tax on production.
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Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...